H-P Wins FEMSA Deal

Hewlett-Packard Company secured a five year research outsourcing contract from the largest soft drink manufacturing company Coca-Cola FEMSA, the Coke bottler in Mexico.

The five-year agreement requires HP to provide necessary support to Coca-Cola FEMSA's Latin American business. The tech major will take the responsibility of consolidating 348 locations to a single data center in Mexico and will as well migrate some applications and server monitoring and management services currently carried out in Brazil and Argentina.

Regular basis

Hewlett Packard is generating new ideas on a regular basis, which is helping it to diversify its business. HP is as well making considerable effort to boost revenue across all business segments.

In the recent past, the company has taken several initiatives with regard to its Printing and Notebook business. HP has as well taken up the task of enhancing its notebook product line. The company recently came up with new advanced gadgets in this segment, which offers optimum balance between enhanced performance, mobility and price.

We remain positive on HP's performance going forward, given its leadership position in the PC and Server segments. Nevertheless we are not very confident about a substantial improvement in the company's consumer business in the nearly future, due to significant increase in competition.

Moreover, HP is aggressively pursuing its cloud computing interest. Given that cloud computing is expected to be a $143 billion market by 2013, the company's increased focus on the market is encouraging. To this end, HP is managing the cloud-based architecture for companies, helping them transform from the traditional computing models to a hybrid computing model.

The gradual revival in IT spending

So we believe that these efforts coupled with the gradual revival in IT spending by companies will help HP retain its leading position in the innovation world. In return, HP has been missing its overly optimistic targets, citing weakness in consumer demand as the reason. This apart, Europe is after all to show sufficient recovery.

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